Because the warranty elapsed?
2 Likes
Good to know! Iāll check that out.
I keep seeing this idea that financing would be better/less payment etc. on several cars on the forum but I donāt see how itās at all comparable. What assumptions are folks making when they say a certain car would be better to finance? No money down, what interest rate, how many months?
Because you look at the cost of the lease and you can make a pretty good guess that buying and then selling after 3 years would almost certainly be cheaper
1 Like
One would hope, but it seems high risk. If a loan is taken out for say 60+ months to get the payment where you want it, and you plan to trade it in after 3 years or when the warranty is up, but have an accident, you could find yourself upside down. Now if you put a down payment on the purchase, you might not be upside down, but then you had to shell out a large chuck of cash which you wouldnāt (or shouldnāt) on a lease.
Yikesā¦this hurts to read. So many better options for this payment. 7500 miles/year? LOL
as others have said M3 will be less than half the price of this lease
the first year of a car takes a big depreciation and then also somewhere between year 3-4ā¦ so an example of where a finance would work out better is if the dealer significantly reduces the selling priceā¦ but the lease numbers are still horrible.
I am looking at a car right now in this scenarioā¦ I just do not feel like financing a 100k car for 66k right nowā¦ so I keep budging them to give me better lease numbers (they want me to shell out 45k over 3 yearsā¦ ). 3 years from now the car will still likely be worth 60kā¦ 4 years from now probably 45kā¦ I could finance it, pay off in 1-2 years and sell having only paid for interest/insurance.
but in all likelihood the car will sell (finance) before they budge on a lease hack.
yeah in the accident scenarioā¦ you are likely stuck with the vehicle for quite sometime. Happened to my DD I financed. Wasnāt even an accidentā¦fāing city towed for street paving and broke my front axle and steering column and put the car back down acting like it never happened. Dealer told me someone tried towing my car.
Make sure you have dash cams! Lesson learned.
If you could rent a house for $1,000 or buy it for $900, which would you do?
2 Likes
Letās not even go there, buying a house costs way more than just the monthly payment you end up with. Please see my $14,000 HVAC replacement bill. 
And a car doesnāt?
To many, I dare say most, part of the appeal of a lease is driving more car for the payment than one could if they purchased.
Paying more to borrow than to buy makes very little sense to me.
What does the miles per year matter? Everyoneās driving habits are different.
Even if OP needed 10k miles/year, itās just a one point bump- an extra $25/month which is pretty insignificant based on the proposed payment.
Iām not sure if it depends on your state but in CA you can file a diminished value claim if there is an accident. I filed one with State Farm on a G37 I financed about 10 years ago and got them to pay out an extra $8K on top of the repair costs on a ~$40K MSRP vehicle (Iāve linked a post to how I filed the claim below).
Taking the risk of accident out of the equation, you can look at 3 year values on CPO of the performance cars people are buying (M4, C63, RS5, etc.) and most of them are quite a bit above the 53-57% residual values being used on the leases. Once you remove the acquisition fee and the difference in rate for top tier credit, financing is the far superior option.
FWIW, I just signed papers on a custom ordered 2019 C63 Coupe that I financed. MSRP of 77K, sales price of 69K. Lease financing would have been equivalent of 5.2% + acquisition fee upfront for an effective rate of closer to 6%. I was able to get penfed balloon financing at 2.99% and have a monthly payment of ~990/month including tax with 2K DAS with a buyout in 3 years of ~50% of the original MSRP
Some cars you just have to finance instead of lease.
https://www.myg37.com/forums/g37-coupe/232105-claim-for-diminished-value.html
2 Likes
Because 7500 miles/year is not very many. If youāre paying that much you would expect to be able to drive the car.
How about 5k mi/yr exotic leases?
If op needs more miles, he can easily structure the deal for more miles. Itās not much more expensive. 7500 miles may not work for you, but it works for some drivers.
I drive the vehicle only 8 mos out of year since I spend the summers outside of AZ. Thus, mileage allowance is not a big deal for me.
Brand perception on these halo models is really interesting to me. In the UK, when I got an RS4, I got an $18k discount on the car for a factory order. I was offered even more in a C63. Whereas in the US they are held in such high esteem that you end up paying a disproportionate amount of money on them, quite depressing really. My Hellcat lease comes to an end in 11 months and I am never going to be able to get close to my current payment. Love the RS5 SB, very very rapid off the line due to the all wheel drive.
I just donāt get how the RS5 is worth such insane figures. You could get an S class loaner AND Porsche Cayman for $1700/month.
2 Likes
Are you saying itād be cheaper to order one from Europe? Haha